In the latest market close, JD.com, Inc. (JD – Free Report) reached $35.58, with a +1.44% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 3.46%. Elsewhere, the Dow lost 2.5%, while the tech-heavy Nasdaq lost 4.31%.
Shares of the company witnessed a loss of 13.12% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 5.53% and the S&P 500’s loss of 5.27%.
Market participants will be closely following the financial results of JD.com, Inc. in its upcoming release. On that day, JD.com, Inc. is projected to report earnings of $1 per share, which would represent year-over-year growth of 28.21%. Alongside, our most recent consensus estimate is anticipating revenue of $40.07 billion, indicating a 11.27% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.76 per share and revenue of $173.05 billion, which would represent changes of +11.74% and +7.65%, respectively, from the prior year.
Any recent changes to analyst estimates for JD.com, Inc. should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. JD.com, Inc. presently features a Zacks Rank of #1 (Strong Buy).
Looking at valuation, JD.com, Inc. is presently trading at a Forward P/E ratio of 6.94. This valuation marks a discount compared to its industry’s average Forward P/E of 20.05.
We can also see that JD currently has a PEG ratio of 0.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. As the market closed yesterday, the Internet – Commerce industry was having an average PEG ratio of 1.18.
The Internet – Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 65, finds itself in the top 27% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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